The European Commission has imposed a fine of 797.72 million euros on Meta for violating the European Union's antitrust regulations. This is due to the linking of its online classified advertising service, Facebook Marketplace, to its personal social network, Facebook, which is considered an unfair practice towards other providers of online classified ad services.
Facebook Marketplace is a platform that facilitates users in buying and selling items online. The Commission argues that by integrating Marketplace into Facebook, all users of this social network are exposed to the advertising platform without having another option. This gives Facebook Marketplace a significant distribution advantage, making fair participation by competitors in the market difficult.
Furthermore, it is pointed out that Meta imposes unfair trade conditions on other providers advertising on Meta's platforms, such as Facebook and Instagram. This practice allows Meta to use third-party advertising data solely for the benefit of Facebook Marketplace, distorting competition in the online classified advertising market.
Following the EU's decision, Meta responded by stating that the conclusions of the European Commission are based on a "potential hypothetical harm to competition" and not on concrete evidence of harm to competitors or consumers. The company mentioned that the decision overlooks the realities of the European online classifieds market and favors already established operators. Meta has announced that it will appeal this decision.
Meta's antitrust case dates back to June 2021, when the European Commission launched an investigation into Facebook's possible conduct in this regard. After accusing Meta in December 2022, the Commission finally imposed the fine in June 2023. The sanction amounts to nearly 800 million euros, equivalent to about 837.61 million dollars, for abusing a dominant position and violating the European Union's antitrust rules.
